AQUACULTURE PRODUCTION REQUIREMENTS - Chapter 9 [objectives] Explain feasibility considerations List and distinguish between ways of doing business Describe general requirements Explain how to select species Describe economic considerations Explain importance of infrastructure Explain the role of regulations and permits

FEASIBILITY OF PRODUCTION Profit potential – money left over after production costs Available finances – money is needed to get started Kind of crop – match crop with area conditions Supporting resources – must have easy access to equipment, feed, etc.

WAYS OF SETTING UP A BUSINESS IN AQUACULTURE Free enterprise – in U.S. you may privately own property Ways of doing business: *sole proprietorship – owned by one person *partnership – two or more people in business together *corporation – a legal entity is created ( a company)

PRODUCTION REQUIREMENTS Qualified management – proper education, good decision making, energy and enthusiasm, good people skills, honesty Labor force – either fulltime or contract Land and water – study past use of land, soil characteristics flooding potential, water availability, amount/cost of land Species and markets – product demand Financial resources – available money

SPECIES SELECTION Climate – different species have different temperature requirements Market outlets – an aquacrop has little value if it cannot be sold Site – species needs to match site Financial resources – different species need different size aquafarms Species potential – must have profit potential

ECONOMIC CONSIDERATIONS Costs – initial costs, annual fixed costs, and production costs Returns – gross return versus net return Financing aquaculture – must either have resources or use credit Risks in aquaculture – the possibility of failure or loss

INDUSTRY INFRASTRUCTURE Infrastructure – network required to produce and market aquacrop *financial institutions *equipment suppliers *feed suppliers *chemical suppliers *processing plants *marketing facilities

REGULATIONS AND PERMITS Environmental protection – regulations and laws govern water use, water discharges, land use, and protected and nuisance species Worker health and safety – child labor laws and OSHA Licensing – requirements vary Product transportation – there may be state and federal border restrictions